Image credit: Petra Diamonds
It said the $40.4 million proceeds from the Letlapa Tala Collection of blue diamonds was offset by weaker prices following the COVID-19 outbreak and the deferral of sales to January 2021 of some 382 000 carats yielding around $30.5 million through a tender which closed on 15 January.
Company chief executive Richard Duffy said consolidated net debt increased to $700.4 million in the first half of the year compared to $635.0 million in the previous year, with total cash of $106.3 million.
He said the continued improvement in the diamond market, with prices now back at pre-COVID19 levels, was encouraging.
Petra's profit from mining activities less exploration and corporate overhead (adjusted EBITDA), jumped 20% to $80.8 million from $67.2 million, the corresponding period last year, representing an adjusted EBITDA margin of 45%, driven by the one-off sale of the Letlapa Tala Collection of blue diamonds and lower mining and processing costs.
Meanwhile, Petra said production was down 16% to 1,74 million carats from the previous year's 2 million carats.
It said production guidance for the fiscal year 2021 remains suspended due to the ongoing uncertainty around the impact of COVID-19.
"Furthermore, the Williamson mine remains on care and maintenance, as has been the case since April 2020, and this situation remains under continual review," said Petra.
"The company is closely monitoring the impact of COVID-19 on its clients' ability to attend tenders and will continue its flexible approach in planning its upcoming sales events."
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
